Terra Stablecoin Collapse
TerraUSD, also referred to as "UST," is a type of cryptocurrency known as a "stablecoin." According to its issuer, it uses an algorithm to peg its value to the US dollar and maintain stability.
In May 9, 2022, Terra lost its peg to the US dollar and plummeted in value to 60 cents, then crashed agains on May 11 to a low of 20 cents. The asset's market value fell from over $18 billion to just over $5 million in a matter of days.
Cryptocurrency is often thought of as an unregulated investment instrument, not subject to the rules that regulate transactions in stocks or commodities. In reality, issuers of cryptocurrency must comply with many of the same laws as other types of investments.
EKO represents investors who have lost money in cases where stablecoins collapsed. If you lost money when the Terra peg broke, or have information about this case, please contact an EKO attorney.
Learn more about what EKO can do for you.